Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A)Increasing the pay-for-performance sensitivity comes with the added benefit of reducing manager's risk.
• B)Stock and option grants give managers a direct incentive to increase the stock price to make their stock or options as valuable as possible.
• C)By tying compensation to performance,the shareholders effectively give the manager an ownership stake in the firm.
• D)During the 1990s,most companies adopted compensation policies that more directly gave managers an ownership stake by including grants of stock or stock options to executives.

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Definitions:

State-Centred Theory

Holds that the state itself can structure political life, to some degree, independently of the way power is distributed between classes and other groups at a given time.

Political Life

Encompasses the activities associated with the governance of a country or other area, especially the debate among individuals or parties having or hoping to achieve power.

State Influences

Refers to how government policies and decisions impact societal behavior and norms.

State-Centred Theory

A theoretical perspective emphasizing the central role of the state in social and economic affairs.